China releases guidelines, seeks feedback for commodity price index regulation

SHANGHAI: China released new guidelines to manage price indexes for commodities and services while seeking public consultation for them until Sept. 6, as part of broader measures to regulate the country's commodities markets and manage price and information transparency.

The guidelines apply to the collection or usage of price information of goods and services in China, or price index behaviour that has "important impact" on the commodity and services market within China, said a statement by the National Development and Reform Commission (NDRC).

Price regulatory departments under the state council or provincial governments will evaluate and review commodity and service price indexes, according to the guidelines.

Price index providers are to carry out self-assessments every first quarter from 2022 onwards, and price indexes should undergo a trial for at least six months before being officially launched.

If price index providers are found to be non-compliant or in violation of regulations, their activities will be suspended and they will be included in the "dishonest enterprise" list, as well as the national credit information sharing platform.

The guidelines however do not give further information on the "dishonest enterprise" list.

China announced earlier in June it would issue new rules effective Aug. 1 to standardise how price indexes are compiled and improve transparency on information release.

This comes amid measures to tame price gains after surging commodity costs drove producer inflation to an over 12-year high.

China's commodity markets are served by many, mostly private, index providers that sell price data on major raw materials, including grains, metals and oil products, to traders and analysts.

Earlier this month, London-based commodities consultancy CRU said it has stopped updating China steel price information on social media platform WeChat for compliance reasons, but continues to publish steel prices on its website.